<PRESENTATION TITLE> Export Facilitation Through EXIM BANK. <Prese ter s Na e> <Designation> <Date> <Venue> 1

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1 <PRESENTATION TITLE> Export Facilitation Through EXIM BANK <Prese ter s Na e> <Designation> <Date> <Venue> 1

2 EXIM Bank (A brief Introduction) Set up in September 1981 under an Act of Parliament to finance, facilitate and promote I dia s international trade and investment. Wholly owned by Government of India. Commenced operations in March Principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services 2

3 Range of Products and Services At All Stages of Export Business Cycle Marketing Advisory PreShipment ADVISORY SERVICES Consulting/ Advisory Services PostPostShipment Shipment Export Product Development Investment Abroad Import Finance Export Production Value Based Services to Exporters KNOWLEDGE BUILDING INFORMATION SUPPLEMENTS FINANCING PROGRAMMES FINANCING, FACILITATING INDIA S TWO WAY TRADE & INVESTMENT 3

4 The MSME Sector MSME Definition Organization Turnover Micro Less than 5 crore Small Enterprise INR 5 crore to INR 75 crore Medium Enterprise INR 75 crore to INR 250 crore 4

5 MSME Sector In India Approx. 45% of I dia s manufactured output Approx. 40% of total exports largest manpower employer overall after agriculture SMEs are mostly in unorganized sector and source of livelihood for millions SME Constraints: Financing, Technology challenges [upgradation; capacity enhancement], Marketing etc, Dominating sectors: Sports Goods, Readymade Garments, Processed Food, Leather, Marine Products etc. 5

6 MSME Sector (Challenges and Risk) Lack of capital Lack of skilled human resources Assessing Lending Risk High cost of loans : High risk due to limited collaterals High resource intensive - Difficulties in achieving economies of scale, investment in technology and infrastructure development Ability to prepare cogent financial proposals 6

7 Exports From Maharashtra Exports through Maharashtra and All India ( ` Crore) Maharashtra All-India % share of Maharashtra in Indian Exports ,61,460 15,46, % ,34,591 18,31, % ,45,349 18,65, % ,36,435 17,14, % ,51,978 18,49, % ,80,844 7,39, % Year The main products exported from Maharashtra are petrochemicals, readymade garments, cotton yarn, metal & metal products, agro-based products, engineering items, drugs & pharmaceuticals and plastic & plastic items. 7 Source: Economic Survey of Maharashtra,

8 Export Potential (Aurangabad) Products exported from Aurangabad Actual Exports from India Untapped Export Potential (In US$ mn) India (In US$ mn) World (In US$ bn) Fabric (Cotton) Fabric (Silk) Pharmaceuticals Cereals Plastic Tubes Source:

9 Exi Ba k s assista ce for SMEs Approach is to create / enhance export capabilities through a comprehensive package of finance, advisory services and information. Undertake capacity building initiatives through : o Financing MSMEs for capacity development o Initiatives under GRID (Grassroots Initiatives & Development Programme); and o MAS (Marketing Advisory Services) for MSMEs Providing Short term and Medium/Long term Refinance to Commercial Banks/FIs. Endeavour is to provide finance holistically at all stages of the business cycle customer centric approach 9

10 Exi Ba k s assista ce for SMEs (contd.) Financing support for Production: Pre-shipment / Post-shipment / Working Capital Finance Finance for Import of raw materials Financing for Capacity and Competitiveness Development: Financing Cost of setting up of Production Units, Modernization and Capacity Enhancement. Financing Research & Development Expenditure Financing cost of setting up JV / Warehouse Overseas 10

11 Exi Ba k s assista ce for SMEs (contd.) Exim Bank designs suitable products to target the various constraints faced by the SME sector Exim Mitra online helpline to support small exporters Cluster Financing : Provides financial assistance to Special Purpose Vehicles (SPVs) of a cluster of MSMEs, under Cluster based financing approach of Exim Bank. 11

12 Cluster Financing Exim Bank, besides providing financial assistance to individual MSME EOUs, also provides financial assistance to Special Purpose Vehicles (SPVs) of a cluster of MSMEs. Term loans are provided to such clusters of MSME units for the following activities: o Development of new geographically contiguous cluster/industrial park, involving creation & maintenance of common infrastructure and common facilities, including inter alia construction of buildings and civil works, acquisition of assets/technology, for the benefit of industrial units within the cluster/industrial park. o Up-gradation of an existing industrial cluster or industrial estate. o Development of specific infrastructure, including common effluent treatment plant, captive power plant, transportation linkages, hazardous waste disposal. o Development of Common Facilities Centers like testing centers, cold storages, for industrial clusters, industrial estates, or a group of industries with common interests. 12

13 Grassroots Initiatives For Development(GRID) Part eri g like i ded i stitutio s a d capitalizi g o Ba k s progra s Key Objective of GRID Initiative o Lending activity for supporting entities at Grassroot Level, with an objective to enhance export competitiveness and make them self sustaining. o Organizing capacity building programs for such entities; 13

14 GRASSROOTS INITIATIVES FOR DEVELOPMENT (GRID) Supporting artisan groups / producer groups / MSEs not just in terms of finance but also in terms of conducting skill upgradation programmes. MOU s signed with - IITM Rural Technology Business Incubator; All India Artisans And Craft workers Welfare Association (AIACA) ; Women on Wings (WoW); Gocoop Solutions & Services Private Ltd. (e-commerce platform for handlooms & handicrafts) etc Capacity Building and Skill upgradation programmes o Workshops: For Design Development, Product development, Branding, Packaging etc. o Training Programmes: On Skill Development, Quality Control, Packaging etc. o Seminars: Organising Seminars in collaborating with State Governments etc. o Events: Organising and inviting artisans for events, exhibitions, art shows, festivals etc. and also for in-house events organised by Exim Bank 14

15 MARKETING ADVISORY SERVICES Match Making, Skill Development and Capacity Building Assistance to Indian companies to access overseas and domestic markets by way of locating distributor(s) / buyer(s) / partner(s) for quality Indian products & services Platform provided for marketing and sale of handicraft and handloom products for NGO s and artisans Capacity building, design sensitization, product development, diversification and innovation through workshops / seminars / training programme To organise participation in trade fair, exhibitions and buyer-sellers meet 15

16 Exim Mitra 1. What is EXIM Mitra? 2. Trade Related Information (Export Import Intelligence) 3. Trade Finance 4. Credit Insurance 5. Helpline 16

17 1. What is EXIM Mitra? Exim Bank has launched an information based portal christened as EXIM Mitra for exporters /importers in an effort to fulfil twin objectives; An online platform for exporters and importers. Delivery of trade related information The portal aims to impart information pertaining to trade finance and credit insurance facilities and act as a facilitator amongst MSME entrepreneurs. Facilitation of access to credit and insurance for exporters and importers. Entrepreneurs shall benefit through a single window access which would handhold them in their efforts towards internationalizing their business. 17

18 2. Export Import Intelligence The Export I port I tellige ce sectio provides data & information on international trade Indicative Steps to Begin Export Sectors: Policies & Incentives Global Product Market Handholding India s Trade: Product & Market Trade Information Leads Export Potential Other useful Links Country Ratings Global Standards & Certifications Indicative Freight Cost 18

19 2.1 Indicative Steps to Begin Export There are certain preliminary steps that are required and rules to be followed before entering into international trade, such as - Establishing a firm, obtaining PAN, Obtaining IE Code, Certificate of origin etc. Indicative steps provides a guide and online links for completing some processes 19

20 2.2 Global Product Market Global Product Market provides information about export performance, international demand, alternative markets and the role of competitors from both the product & country perspective. 20

21 2.3 Export Potential Export Potential showcases results from the ITC export potential and diversification assessment methodology that spots Products, markets and suppliers with (untapped) export potential Opportunities for export diversification. 21

22 3. Trade Finance Trade Finance Section provides information on (of select Banks which provide international trade finance.) Products Branches We have partnered with 15 banks: State bank of India IDBI ICICI AXIS Yes Bank Standard Chartered Union Bank of India Andhra Bank Punjab & Sind Bank Corporation Bank Vijaya Bank Indian Overseas Bank Syndicate Bank Oriental Bank of Commerce Allahabad Bank Preliminary Data: The portal also facilitates capturing of preliminary data, which can be filled and submitted online by the prospective exporter/exporter applicant. The online format is brief and contains the most requisite information which would be required for a financial institution to assess the proposal, and then decide based on its merits. This preliminary data is shared with participating Banks. 22

23 4. Credit Insurance Credit Insurance provides information of Products offered by ECGC & its Branches. 23

24 5. Helpline Helpline: FAQ Query We have a Helpline section. Here we have a section for Frequently Asked Questions & a Query section, where users can submit their queries, and we answer them all. We have an Expert panel to support us to resolve queries. 24

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